Case study: How LABORAL Kutxa works with its clients and customers to encourage sustainable practices

Stakeholder identification and consultation

Please describe which stakeholders (or groups/ types of stakeholders) you have identified, consulted, engaged, collaborated or partnered with for the purpose of implementing the Principles and improving your bank’s impacts. This should include a high-level overview of how your bank has identified relevant stakeholders, what issues were addressed/results achieved and how they fed into the action planning process.

LABORAL Kutxa has recognized various stakeholders with whom it engages in dialogue on sustainability matters. The outcomes of these discussions inform the materiality analysis, which helps prioritize the ESG factors the organization should focus on and report within the annual Sustainability Report. To conduct this analysis, 300,000 surveys are distributed to stakeholders, categorized into the following distinct groups:

• Customers: typically those with the closest relationships with the organization, mainly within the Premium Banking, Personal Banking, TOP, and KIDE sectors.
• LABORAL Kutxa employees: this includes all staff members.

These dialogues also address topics related to business and sustainability. For the materiality analysis, a summary of the Sustainability Report is sent to over 300,000 customers and employees, with approximately 2,100 responses collected. A key stakeholder group is the staff, who are members and owners of the cooperative, ensuring numerous communication channels and participation in decision-making. Employees, like customers, are also provided with the Sustainability Report summary and invited to complete the sustainability survey.

In 2022, a new materiality analysis was initiated, incorporating the concept of double materiality, alongside the existing Materiality Matrix developed with stakeholders. This dual approach not only considers impact materiality, as discussed with the previously mentioned stakeholders, but also includes financial materiality, which examines how sustainability issues may influence the bank’s performance. At LABORAL Kutxa, both the Board of Directors and the Governing Board are consulted regarding these matters.

How did LABORAL Kutxa work with its clients and customers to encourage sustainable practices and enable sustainable economic activities?

In its 2024 PRB Reporting and Self-Assessment Template LABORAL Kutxa reports that it works with its clients and customers to encourage sustainable practices and enable sustainable economic activities as follows:

LABORAL Kutxa implemented the Zentzua project in 2023, which was aimed at redefining both the purpose and mission of LABORAL Kutxa, addressing questions such as why LABORAL Kutxa exists and what its purpose is. Zentzua consists of three main areas: one focuses on the people within the Bank, another on society, and the third on customers.

Within the customer-related area, seven principles are defined to guide the relationship between the people of LABORAL Kutxa and its employees, which are closely linked to various aspects of sustainability:

• LABORAL Kutxa aims to extend its financial and insurance service model to all of society.
• LABORAL Kutxa promotes a close, professional, and honest long-term relationship.
• LABORAL Kutxa ensures comprehensive availability and accessibility.
• LABORAL Kutxa will foster a people-cantered approach, providing a hybrid service of the highest quality.
• LABORAL Kutxa offers products and pricing tailored to the customer.
• LABORAL Kutxa encourages responsible financing.
• LABORAL Kutxa is committed to the responsible use of new technologies and the data of its customers.

Similarly, the ESG Finance, Investment, and Assurance Policy outlines certain practices to promote sustainable and responsible practices for customers. In this context, specific sectors or activities are excluded due to their conflict with the values of LABORAL Kutxa and its ESG goals. Additionally, other sectors are categorized as sensitive or in need of special monitoring, as they could contradict LABORAL Kutxa’s ESG targets. All these efforts are guided by dialogue and engagement to facilitate a sustainable transition.

To this end, two main initiatives are underway. Firstly, dialogue processes have commenced with larger companies that receive financing and belong to these sensitive sectors, utilizing short surveys to assist them in transitioning to sustainable models.

Secondly, regarding the direct investments made by the LABORAL Kutxa Group in company shares and bonds, Columbia Threadneedle Investments has been engaged to conduct engagement activities starting in early 2024. This agreement allows for the transfer of political rights in these positions, enabling Columbia Threadneedle to engage with these companies and attend general meetings on behalf of LABORAL Kutxa, with the goal of promoting their sustainability performance.

Furthermore, a sustainable financing framework (SFF) was established in 2022, alongside the development of a catalogue of products featuring sustainable characteristics in both financing and advised investment funds. The creation of these products represents the most effective way for LABORAL Kutxa to support its customers’ sustainable initiatives.

Regarding investment funds, questions have been included in investment advisory surveys to gauge customer preferences concerning sustainability.

Through its financing, products, and investment funds, LABORAL Kutxa aims to enhance positive impacts on the economy and society while minimizing negative environmental impacts.

UN Principles for Responsible Banking: Accelerating a positive global transition for people and the planet

With over 300 signatory banks representing almost half of the global banking industry, the Principles for Responsible Banking are the world’s foremost sustainable banking framework. Through these Principles, the banking community takes action to align core strategies, decision-making, lending and investment with the UN Sustainable Development Goals and international agreements such as the Paris Climate Agreement.

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References:

This case study is based on published information by LABORAL Kutxa, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:

https://corporative.laboralkutxa.com/src/uploads/2024/09/PRB.2024_EN-1.pdf

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